MANILA, Philippines — Broadband specialist Converge ICT Solutions Inc. is rolling back its capital expenditures for the year by at least P4 billion, but may ramp up spending in 2025 to make up for project delays.
Converge is expected to roll over P4 billion in capex to 2025 to catch up on its project deliveries, as the company may fail to use up all of its budget allocated for 2024.
Converge chief finance officer Robert Yu said the company would miss out on its capex guidance of P15 billion to P17 billion due to challenges faced in its fiber rollout.
Yu said Converge found it difficult to build up its infrastructure network throughout the year, as the Philippines was hit with typhoons, delaying project timelines. In turn, Yu said capex may just reach P11 billion to P13 billion this year.
Currently, Converge has yet to firm up a definite capex for 2025, but indicated it would be higher than 2024. The internet service provider is investing not only in its connectivity business but in its technology ventures as well, like data centers and enterprise solutions.
Financially, Converge is leading the broadband industry in growth rate, booking a 29 percent rise in its profit to P8.21 billion in the nine months to September, from P6.37 billion a year ago.
Likewise, revenue jumped by 14 percent to P29.94 billion, lifted by P25.44 billion in residential earnings, with a P4.5 billion boost in enterprise income.
Also, Converge is making progress in gaining more subscribers both for its flagship and prepaid products, adding 258,000 customers in the third quarter, the highest in three years.
As of September, the provider has widened its subscriber base to 2.46 million, made up of 2.22 million for postpaid and 241,848 for prepaid. Yu said the prepaid segment is making progress in raising its revenue contribution, now accounting for around five percent of the total.
Converge is also starting to maximize its existing portfolio of fiber lines, recording a utilization rate of 28.2 percent as of September. To date, Converge owns 8.93 million fiber lines nationwide, setting up the company for future growth.
Converge CEO and co-founder Dennis Anthony Uy said the provider is expected to end the year strong, especially as it is making improvements on key metrics.
Further, Uy believes Converge is on the path of graduating from a connectivity provider to a tech innovator, as it enters disruptive segments of the market to expand its service reach.